Excel: Calculating Principal Paid/Owed and Interest Paid/Owed

Last reviewed: November 2, 1994
Article ID: Q52224

SUMMARY

The following four formulas calculate:

  1. The amount of principal still owed after "x" number of periods

  2. The amount of principal paid after "x" number of periods

  3. The amount of interest still owed after "x" number of periods

  4. The amount of interest paid after "x" number of periods

MORE INFORMATION

  1. To calculate the amount of the principal remaining on a loan after "x" number of periods, use the function FV (future value) as follows:

          =FV(rate,x,pmt,pv)
    

    where "rate" is the rate per period, "x" is the number of periods that have been paid, "pmt" is the amount of the payments, and "pv" is the amount of the loan.

  2. To calculate the amount of principal already paid on a loan after "x" number of months, use the following formula:

          =-pv-FV(rate,x,pmt,pv)
    

    where "pv" is the amount of the loan (a negative number) and the variables for the FV function are the same as above.

  3. To calculate the amount of interest paid after "x" number of periods, use the following formula:

          =pmt*x+pv+FV(rate,x,pmt,pv)
    

    where all variables are as previously described.

  4. To calculate the amount of interest still owed, use the following formula

          =PMT*(nper-x)-FV(rate,x,pmt,pv)
    

    where "nper" is the total number of periods for the loan, "pmt" is the amount of the payments, "pv" is the amount of the loan, and "interest paid" is the amount calculated from the previous example.

Note: It is assumed for all financial functions that the present value (PV) of a loan is a negative number.

For more information on the financial functions PV, FV, IPMT, NPER, PMT, PPMT, and RATE, see pages 72-73 in the "Microsoft Excel: Functions and Macros" manual for Excel version 2.20 or pages 87-89 in the "Microsoft Excel Arrays, Functions, and Macros" manual for Excel version 1.50.


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Additional reference words: 1.50 2.20 3.00


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Last reviewed: November 2, 1994
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